Print    Email

Email To		[Close]
		You must make entries in all fields
Your Email
Your Name
Send to Email
		Send

Government has decided to raise the Foreign Direct Investment (FDI) limit from 49% to 74% in the cable distribution platform.  This follows the node given by the Cabinet for implementation of the complete digitization process.

 A draft note to this effect, prepared by Department of Industrial Policy and Promotion, has already been sent to various ministries for their comments and inputs. They include information and broadcasting ministry and the department of telecommunications.

As suggested by a report, the hike will also moot for uniform FDI cap across various carriage platforms like DTH, IPTV, mobile TV, HITS and cable companies.

The information and broadcasting ministry and the TRAI official will meet next week for FDI clearance. They will discuss a proposal which suggests that 49% out of 74% to  be put under automatic route. 

 The remaining will come through Foreign Investment Promotion Board (FIPB).  Currently, FDI norms differ on various platforms.  For mobile TV, HITS and IPTV, it is 74 per cent, but the the permissible foreign investment cap for cable distribution companies is 49 per cent. Of this, up to 20 per cent can be FDI. The balance can be from foreign institutional investors and non-resident Indians among others.

Last year, in June The Telecom Regulatory Authority of India (TRAI) had suggested to raise FDI for broadcast carriage services like DTH to 74 %. Moreover it also asked to reduce the FDI cap for analogue cable firms from 49 per cent to 26 per cent, to which the I&B Ministry did not  agree.

The current hike in the FDI limit will be apromising step for thr cable industry as it will be helpful in providing the necessary funding for the complete digitization of the cable industry which will cost around Rs 20,000-25,000 crore.